Gov’t revisits MPIC bid to take over MRT-3

MANILA, Philippines — The Department of Transportation (DOTr) has not completely taken out of the picture Metro Pacific Investments Corp. (MPIC)’s unsolicited proposal to operate the MRT-3 amid previous statements indicating that the agency is inclined to have a solicited bidding for the project.

“We can look at the unsolicited, but also take a look at solicited. What is running through our minds right now is unsolicited, but what I want is for it to be as a whole.  Operations, maintenance, equity, ownership – everything will be included, lock, stock and barrel,” Transportation Secretary Arthur Tugade said.

“What I am saying is we are looking at the unsolicited (proposal), but that does not mean that it would be the one. We are also eyeing if it can be solicited,” he said.

Tugade said the government and the private proponent are discussing details of the proposal.

“Up to what extent we will agree, I don’t know. We are still talking,” he said.

In an interview last October, Tugade said he intends to make the project a solicited proposal, wherein the contract would be auctioned amid an existing unsolicited proposal from MPIC that has already bagged an original proponent status (OPS).

This was further supported by Transportation Undersecretary Timothy John Batan, who in a separate interview, said the solicited route is the direction the DOTr is heading into for the MRT-3.

MPIC, in partnership with Ayala Corp. and Macquarie Infrastructure Holdings (Philippines) Pte Ltd., was granted OPS by the DOTr last year for its proposal to rehabilitate, operate, and maintain the MRT-3 for 30 years.

Being granted OPS gives MPIC the right to match an offer given by another group via a Swiss challenge.

The rehabilitation component, which was supposed to be part of MPIC’s unsolicited proposal, is now out of the equation as the DOTr announced that Japan’s Sumitomo and Mitsubishi Heavy Industries is returning as the rehabilitation and maintenance service provider of the MRT-3.

MPIC’s proposed investment for its MRT-3 proposal is P20 billion and it includes a provision of no fare increase for at least two years.

The company has also offered to buy out the government’s stake held by Land Bank of the Philippines and Development Bank of the Philippines as well as other shareholders in Metro Rail Transit Corp. or the private owner of the train system.